Kona wind, winter 2024 part 2

Found a way for Japan to survive / Hawaiian Egret way!

How to survive, not confront the conflict directly is another Wise way to survive

Coaching from Sub-Zero for survival in the real world / Session 2, 2024 (8th January 2024)

The backyard of my condo at Mauna Lani is linked to the fairway of the 16th hole of the north course of Mauna Lani Golf (one of the toughest holes though,,) and the maintenance team is always keeping the grass clean. Every time the maintenance team worked out, clever Hawaiian egret followed the work. Yes, they know that their lunch mainly worms came out after cutting the lawn.

Well well well, Is this a proper strategy for Japan to survive in this tough global market? Yes, it is!

<The following is purely my personal assessment>

Most of the economic analyses say that Japan experienced lost-30 years. Still, I always say that, but we did not have Shohei Otani (The unicorn in baseball), Naomi Osaka (double major tennis grand slam winner), or Hideki Matsuyama (a Master’s champion in golf) when I graduated from the undergraduate 35 years ago. Even after many major natural disasters including Kansai in 1997 and Tohoku in 2011, Japan still survives.

In the era of the US and Europe (including the UK) faced price hikes and huge inflation, Japan could keep inflation at the lowest level. This is given from the industrial structure with wholesale driven and the wholesaler could absorb the price increase/decrease at once. Indeed, this creates less flexibility to adjust to the change in global competition. But we are still surviving, without huge riots for bad politics and economy, even unemployment. Huge public debt? Nearly most of the public debt is domestically refinanced and no worry that foreign entities would sell off. Still, the private sector assets are increasing to 2115 trillion Japanese Yen, more than doubled from the last bubble busted (1991) and remarkably half of these assets are kept in bank deposits (even nearly zero interest rate, https://asia.nikkei.com/Economy/Japan-households-financial-assets-hit-record-14tn-on-stock-rally). This purely patriotic structure supports domestically balanced assets and liabilities. Strange country, Yes it is. But this is socialism-oriented Japan. We can not say only “lost” in these 30 years.

Globe is in the middle of geographical risk. Japan is in the middle of the US and China and national security is under the support of the US. It is easy to say Japan should compete more in the global market. Some Japanese corporates like Toyota, Mitsui, Eizai, Fast Retailing (Uniqlo), Seven Eleven, Suntory, and Canon have a competitive edge. Even though the political system is still immature, the private sector remains strong and the corporate tax revenue to the government remains historically high (https://asia.nikkei.com/Spotlight/Datawatch/Japan-s-500bn-puzzle-Why-are-tax-revenues-surging-amid-slow-growth).

Is it the proper way to fight face-off with the world? I do not think so. Let them compete and Japan can feed after the lawn cutting like Hawaiian Egret,, Is this so mean?

My mentor, Prof. Nonaka, and Takeuchi-sensei always tell how the Wise Leader matters (https://hbr.org/2011/05/the-big-idea-the-wise-leader), and Phronesis is important. Phronesis is also described as 中庸 in ancient Chinese way. I am sure this is the way for Japan to survive in this turmoiled world.

Welcomed many counter-comments on my opinion, on which I can explore my thoughts more. Delighted!